CVA (Company Voluntary Arrangement)

A CVA is a legally binding agreement between an insolvent company and its creditors, administered by one of our Insolvency Practitioners (IP), to repay its debts over a period of time – typically within 5 years – and usually for an amount that is lower than the actual amount owed

Benefits of a CVA:

Allows the company to continue trading, with the existing Directors remaining in control

Writes off the debt the company cannot afford to pay

Stops legal action such as CCJs and winding up procedures

Eases cash flow pressures

Clears the company's unsecured debts – usually within 5 years

If you are a Director of a limited company then you have a legal responsibility to seek professional advice if you believe your company may not be able to avoid insolvency. Furthermore if you continue to trade whilst insolvent you may be found guilty of wrongful trading and, in extreme cases, become personally liable for any additional debts incurred.